Don't Forget Debit Memos

Suppose a customer submits a payment that's $100 short — maybe they took an unauthorized discount
or overlooked part of the balance. Just as credits should be documented, so should shortages.

Prepare a debit memo showing:

• The invoice involved
• The amount still owed
• The reason for the adjustment
• The date the shortage was identified

This creates a complete account record and ensures the customer understands how the outstanding balance was calculated.

Avoid Unexplained Entries

One of the most common mistakes businesses make is posting adjustments without sufficient explanation. Every item on a statement should be supported by documentation. If an adjustment can't be explained and verified, it may be difficult — or impossible — to enforce later. Unexplained entries also damage your credibility. Customers are far more likely to challenge invoices when records appear incomplete or disorganized. Good documentation builds trust while protecting your legal rights.

Learn more in our latest article.

We’re Your Michigan Collection Company!

Our Michigan collection company has offices in Birmingham and Grand Rapids, we represent clients throughout Michigan and assist creditors across the United States and around the world. If you're dealing with unpaid accounts, disputed balances, or difficult collection matters, contact us at (248) 645-2440 or submit a contact form to discuss your options. We're here to help you pursue the money you're owed — efficiently, ethically, and effectively.

Why Documents Matter

Every transaction involves orders, shipments, payments, credits, and adjustments — and each should be
documented promptly. Without proper records, even minor discrepancies can become major collection issues. Customers forget details, employees leave, and memories fade. Written documentation preserves the facts long after the transaction occurs. In most disputes, the party with the most complete records is in the strongest position.

A Common Example

Say a customer buys $500 worth of paper plates, but $100 worth arrive damaged. Your sales agreement says the customer assumes risk once goods are delivered to the carrier — meaning they file the claim if damage happens in transit. But if an investigation shows the damage occurred before the plates left your warehouse, your company owes a $100 credit.

The proper response is to create a credit memo immediately, clearly identifying:

• The damaged products
• The amount being credited
• The date of the adjustment
• The related invoice number
• Any supporting notes explaining the reason

Enter the credit into your accounting system without delay so it appears accurately on the customer's statement.

Learn more in our latest article.

We’re Your Michigan Collection Company!

Our Michigan collection company has offices in Birmingham and Grand Rapids, we represent clients throughout Michigan and assist creditors across the United States and around the world. If you're dealing with unpaid accounts, disputed balances, or difficult collection matters, contact us at (248) 645-2440 or submit a contact form to discuss your options. We're here to help you pursue the money you're owed — efficiently, ethically, and effectively.

Revoking an Offer Before Making a Contract

Do you know what truly makes a contract enforceable?

Whether you're extending credit, working with vendors, or closing a deal, understanding the fundamentals of a contract is essential to protecting your business.

In most cases, an offer can be withdrawn at any time before it is accepted. However, there are important exceptions:

• Option agreements: When the offeree pays to keep the offer open for a specified period 
• Legal requirements: Certain rules, such as those governing merchants, may require offers to remain open under specific conditions 

Understanding these nuances can help you avoid costly missteps.

Why This Matters for Your Business

Contracts are the backbone of any successful business relationship. When agreements are unclear, incomplete, or improperly formed, collecting what you're owed becomes much more difficult.

That’s where experienced legal guidance makes all the difference.

Read more in our latest article.

Looking for Collection Services in Michigan?

Since 1961, our firm has been committed to helping businesses recover outstanding balances efficiently and ethically. Whether you're in Michigan or operating from out of state, our services can support your collection efforts. Call 248-645-2440 or submit an online contact form to get started!

The Five Core Principles of Contracts

At its core, a valid contract is built on five key elements: offer, acceptance, consideration, mutual assent,
and legality. Let’s break down what each of these means—and why they matter.

1. Offer: The Starting Point

Every contract begins with an offer. This is a clear proposal made by one party (the offeror) to another (the offeree), expressing a willingness to enter into a binding agreement.

In today’s business environment, offers are often made through emails, digital platforms, or written proposals. Regardless of the format, the terms should be clear and specific to avoid confusion later.

2. Acceptance: Clear Agreement to Terms

Acceptance occurs when the offeree agrees to the terms of the offer. This can be done through a direct statement or through actions that clearly indicate agreement.

To avoid disputes, acceptance should always be clear and unambiguous. When possible, respond using the same method the offer was delivered—this helps establish a clean record of agreement.

Timing also matters. If the offer includes a deadline, acceptance must happen within that timeframe. If no deadline is given, the law allows a “reasonable time,” which can vary depending on the situation.

3. Consideration: Value for Value

A contract must involve an exchange of value—this is known as consideration.

In most business transactions, this means one party provides goods or services, and the other provides payment. Courts generally don’t evaluate whether the deal was “fair”—only that something of value was exchanged.

4. Mutual Assent: A Meeting of the Minds

Modern contract law focuses heavily on mutual assent, meaning both parties clearly understand and agree to the essential terms.

This is especially important in today’s fast-paced business world, where informal agreements, email chains, and ongoing relationships can blur the lines. Misunderstandings about key terms can lead to disputes—or even claims that no contract existed at all.

5. Legality: A Lawful Purpose

For a contract to be enforceable, its subject matter must be legal.

Laws and regulations can change, and agreements that were once valid may become unenforceable if they later violate new rules—particularly in highly regulated industries like technology, finance, or international trade.

Read more in our latest article.

Looking for Collection Services in Michigan?

Since 1961, our firm has been committed to helping businesses recover outstanding balances efficiently and ethically. Whether you're in Michigan or operating from out of state, our services can support your collection efforts. Call 248-645-2440 or submit an online contact form to get started! 

Defendants for Incorporated and Unincorporated Debtors

In our last blog, we went over different types of defendants to look for when you file a lawsuit against
your debtor. Those are applicable to ALL types of debtors; below, we go over a few additional types of defendants that you may find in cases of incorporated and unincorporated debtors.

For unincorporated debtors, such as individuals and partnerships:

• Owners: A proprietor of a business.
• Partners: All general partners of a partnership.
• Persons who hold themselves out as owners: Anybody who claims to be an owner with you when completing credit applications or placing orders with your company.

For incorporated debtors, such as corporations and LLCs:

• Owners of startups: If a debt is owned by a new business, check to see if the corporation was formed at the time of your transaction. If not, for transactions that occur before incorporation, the business should be treated like a partnership.
• Owners of expired entities: If an incorporated business allows its corporate status to expire prior to the dates of your invoices, you can treat the business like a partnership. For example, your customer, Jones Company, Inc. allows its charter to expire in June of 2006 and your invoices are dated 2007 through 2009.

Learn more in our latest article.

Start with Michigan Collection Services

No matter what you need help with, the Mullers are here to walk you through the legal collections process. There are no dumb questions, so don’t be afraid to reach out! If you’d like to know more about using our Michigan-based collection services, call 248-645-2440 or submit an online contact form.

When You Sue Your Debtor, Who Counts as a Defendant?

When you file a lawsuit, include as defendants all people who may be responsible for paying a debt.
Review your credit file for helpful information. It’s best to add all defendants at the beginning of a lawsuit, right when things get going, so that you can get them all served with copies of the lawsuit and reduce the chances for the litigation to drag it out. Among those defendants that should be named are:

• Guarantors: All personal guarantors or co-sureties liable as a matter of contract.
• Successor companies: Companies that have taken over the operations of your debtor, with no significant changes in ownership, capitalization (investment), or other aspects of the business (such as location, phone number, or inventory). For example, your debtor is Sam’s Bike Shop, since renamed as Sam & Sally’s Bike Shop but remaining under the same ownership.
• Issuers of bad checks: Persons or companies that have written checks for payments to you that have failed to clear the bank.
• Individuals who are liable as a matter of law: For example, your state may have a law that holds individuals or companies responsible for certain types of building contract violations, such as taking money from homeowners but not paying suppliers and subcontractors with that money.
• The principal to a contract: Sometimes the person who signs the contract is an authorized agent or employee, and not the person who’s ultimately responsible for payment under the contract. If the principal is undisclosed, you should go ahead and name the agent.
• Beneficiaries of fraud: If the debtor has transferred property or other assets out of his own name to try to hide the assets from creditors, your state’s fraudulent conveyance laws may allow you to sue the recipient of the property.

Learn more in our latest article.

Start with Michigan Collection Services

No matter what you need help with, the Mullers are here to walk you through the legal collections process. There are no dumb questions, so don’t be afraid to reach out! If you’d like to know more about using our Michigan-based collection services, call 248-645-2440 or submit an online contact form.

Why Preparation Matters in Small Claims Court

Have you decided to take legal action against a debtor?

Many creditors assume that having a valid claim is enough. In reality, winning in small claims court requires preparation, organization, and confidence. Judges won’t remind you to present key documents or witnesses — that responsibility falls on you.

Failing to bring documentation, witnesses, or a clear argument can weaken even the strongest cases. Understanding court rules and expectations before your hearing can significantly improve your chances of success.

To learn more about avoiding common litigation mistakes, read our full article.

Take the Pressure Off with Michigan Collection Services

If handling litigation feels overwhelming, we can help. Our experienced Michigan collection attorneys know how to present strong cases and pursue outstanding balances ethically and effectively.

Call 248-645-2440 or fill out our online contact form to get started.

Five Common Litigation Mistakes Creditors Should Avoid

Considering legal action against a debtor?

Even strong cases can fall apart when creditors make avoidable mistakes in court. From misunderstanding who may represent a business to appearing without proper documentation, small missteps can lead to big losses.

Some of the most common litigation mistakes include expecting the judge to guide your case, failing to bring key witnesses, or presenting your claim without confidence. Courts expect preparation — and they expect proof.

Learn more about how to avoid these common litigation pitfalls in our latest article.

Take the Pressure Off with Michigan Collection Services

If handling litigation feels overwhelming, we can help. Our experienced Michigan collection attorneys know how to present strong cases and pursue outstanding balances ethically and effectively.

Call 248-645-2440 or fill out our online contact form to get started.

Preparing a Script for a Collections Call

Unsure how to best prepare for a successful collections call?

Your collection phone calls adhere to a simple pattern: you identify yourself and request payment from the debtor. You don’t need to have a complicated script on hand, anticipating every response and scenario, but you should have your basic collections request scripted.

Your script opens with, “This is [your name] from [company name] calling for [debtor name].” Never disclose that you’re seeking money until you have the intended person on the phone. You want to be sure that the person you’re speaking with can authorize payment of your bill.

After the debtor answers the phone, repeat your name, the name of your business, and make a specific request for money. Here’s an example: “This is Tom Smith calling from the ABC Company in Birmingham, Michigan. We show a balance of $2,500 that is 60 days past due, and I’m calling to request payment of that sum. Can you send us payment today?”

We hope that these tips help you feel more confident during your collections call! But if you need help…

Learn more in our latest article.

Call the Michigan Debt Collection Experts

If your debtor is uncooperative, or even if you just don’t want to make the call yourself, our attorneys can handle it all for you! As long as either you or your debtor are in Michigan, we can handle your debt collection. 

To get in touch, call (248) 645-2440 or submit a contact form. We look forward to working with you!

How to Mentally Prepare for a Collections Call

Feeling anxious about calling your debtor?

Before “dialing for dollars,” spend a few moments to consider what you’ll be discussing with the debtor, the debtor’s likely responses, and even the outcome. Think through your call, including:

• Warming up for a collection demand.
• Fixing the minimum demand in your mind (for example: full payment now, or half down and half in 30 days).
• Keeping on an even keel emotionally, even if your debtor loses it.
• Being persistent if a debtor stalls for time.
• Listening but not agreeing with any statement’s contrary to your collection goals.

Picture yourself being calm, confident, and collected during the call. This is time well-spent and can help make your call much more effective.

Learn more in our latest article.

Call the Michigan Debt Collection Experts

If your debtor is uncooperative, or even if you just don’t want to make the call yourself, our attorneys can handle it all for you! As long as either you or your debtor are in Michigan, we can handle your debt collection. 

To get in touch, call (248) 645-2440 or submit a contact form. We look forward to working with you!

Keeping Copies of all Client Material

Why is it important to keep all your customer’s records?

In our last blog, we talked about what notes you need to keep on your clients. Following that, here is a brief description of the copied documentation that you should keep alongside your notes:

1. Copies of all follow-up statements. Your copies should be exactly as they were sent to the debtor, including any markings of “urgent,” “reminder,” “past due,” and so on, so you can demonstrate your persistent efforts to collect the debt without resorting to litigation.
2. Copies of all demand letters and follow-up correspondence. Keep records of all correspondence, no matter how it was sent. Keep copies of letters, emails, faxes, or any other written exchanges.

Learn more in our latest article.

Need help collecting commercial debt from someone in Michigan?

You’re in the right place!

Your money is our #1 priority. If you or your debtor live in Michigan, we can take on your commercial collections. Take the pressure and frustration off your plate by contacting the Mullers at (248) 645-2440 or by submitting a contact form. 

Keeping Notes on Your Clients

What are the most important things to keep track of with your customers?

Before an account is delinquent, your records help you avoid confusion and get paid. After an account is delinquent, you’re preparing for litigation, which you hope doesn’t happen. You’ll need detailed notes if litigation comes into play.

Here’s a detailed breakdown of all the notes that you should keep on file:

1. Your customer’s entire credit file. Credit applications, invoices, purchase orders, debit and credit memos, and a ledger summarizing all transactions (a ledger comes in handy when your customer wants to nitpick the account or suddenly develops amnesia when reminded that there’s a balance due).
2. Notes of phone calls made or received, along with dates and responses. If the debtor admits owing the amount due, be sure to include that in your note. Admissions are extremely important if you end up having to go to court.
3. Notes made by employees of your company. Include notes regarding meetings, promises, disputes – anything relating to the account.

Learn more in our latest article.

Need help collecting commercial debt from someone in Michigan?

You’re in the right place!

Your money is our #1 priority. If you or your debtor live in Michigan, we can take on your commercial collections. Take the pressure and frustration off your plate by contacting the Mullers at (248) 645-2440 or by submitting a contact form.

The Standard Behavior of Debt Collectors

Is it hard to find an ethical debt collector?

The answer is no, it’s actually not hard to find an ethical, responsible debt collector. Consumer laws such as the Fair Debt Collection Practices Act arose from the misconduct of a few irresponsible, abusive debt collectors, not the majority. These consumer laws have cut back abuses. Scrupulously following these laws, even when they don’t apply, can help ensure professionalism and avoid misunderstandings and other problems. 

Unless you negotiate specific file handling procedures, your collections professional operates in accordance with their own standards. When you desire a more restrictive standard of conduct, don’t hesitate to instruct your collector to follow your standards. For example, you may limit the number of demands that they make to a debtor before filing collection litigation.

You should be comfortable that your outside collectors are well-trained and professional, and will handle your customers (debtors) with dignity. None of those hallmarks of professionalism are incompatible with aggressive debt collection. The bottom line is that you want your collection professionals to follow a standard of ethics that’s as similar as possible to the ethical standards of your own business.

Read more about this in our latest article.

Have Confidence with Michigan Collection Companies

Are you in Michigan and anxious about hiring collection companies?

You don’t have to worry about unethical or unprofessional behavior occurring with the Muller Law Firm. If you need a second opinion, check out reviews from our happy clients. To get started or ask a question, call (248) 645-2440 or submit a contact form here. We look forward to hearing from you!

Working with a Collector: How Your Business is Responsible

Did you know that when you work with a collector, your business takes responsibility for their
behavior?

When you hire collection professionals and include them on your collection team, you assume responsibility for the professionals to be, indeed, professional and ethical in their services. But at the same time, you give up some of your control—perhaps a lot of your control—over the collection.

Beyond the possibility that your collector’s misdeeds may frustrate your ability to collect a debt or trigger a counterclaim, their actions are being taken in your name. The type of service you use to collect your debts will reflect on your business, and every time you place a claim with an outside collector, you put the reputation of your company on the line.

By nature, the collections business is adversarial. Debtors don’t like to pay debts, and nobody likes to be confronted with aggressive collection efforts. Not all collectors act ethically or legally, and those problem solver-type news segments love to showcase abusive collection tactics. Your company doesn’t want to find itself at the center of adverse publicity as a result of debt collection gone haywire.

Read more about this in our latest article.

Have Confidence with Michigan Collection Companies

Are you in Michigan and anxious about hiring collection companies?

You don’t have to worry about unethical or unprofessional behavior occurring with the Muller Law Firm. If you need a second opinion, check out reviews from our happy clients. To get started or ask a question, call (248) 645-2440 or submit a contact form here. We look forward to hearing from you!

Entering a Contract with Your Collector

What kinds of things do you need to agree on with a collections professional?

You want to make sure you have written contracts with your collections professionals. You may enter into contracts on a claim-by-claim basis, or you may sign a contract that defines an overall relationship with your professional, perhaps to be renewed annually. Your contract should include provisions detailing what services you’re using and what they cost so that both you and your professional know exactly where you stand before your relationship begins.

The collection industry is highly competitive, and you can expect competitive rates. You may agree to pay professionals by the service, by the hour, or on a contingency basis, where their fee is a percentage of the amount they recover.

Read more in our latest article.

Need Debt Collection Help in Michigan?

Our firm has you covered!

If you’re frustrated with a lack of action from your debtor, our lawyers can help you with debt collection in Michigan. If you have questions about any part of the collection process, or if you’re ready to place a claim, call us at (248) 645-2440 or submit a contact form here.

The Basics of Contingency Fees

What is a contingency fee?

When you enter a contract with a debt collection professional, there may be a contingency fee agreement. A contingency fee is money that a lawyer only gets if your case is won. A contingency fee agreement should describe:

• When and how amounts recovered are to be remitted: For example, your agreement may require that payments by check be remitted when the debtor’s check clears the bank, or, for a certified check, immediately upon receipt. If the service is collecting multiple accounts, you may choose to schedule payments of remittances (e.g. biweekly or monthly) rather than separate payments for each remittance.
• Costs chargeable to you: If the debt collector charges costs in addition to the contingency fee, the contract should describe what costs may be charged and provide a proper accounting to you. For cases that go to court, expect to pay certain litigation costs like filing fees, deposition fees, and subpoena and witness fees.
• How remittances will be paid: Will your service pay you by electronic transfer, or by ordinary checks delivered by mail or overnight courier?

Before you hire a collections professional, figure out what services you actually need and what each service costs. You can make adjustments as you proceed, but you can avoid unnecessary sticker shock by paying attention to these details before you sign on the dotted line.

Read more in our latest article.

Need Debt Collection Help in Michigan?

Our firm has you covered!

If you’re frustrated with a lack of action from your debtor, our lawyers can help you with debt collection in Michigan. If you have questions about any part of the collection process, or if you’re ready to place a claim, call us at (248) 645-2440 or submit a contact form here.